Rent-Way, the Nation's Second Largest Operator of Rental Purchase Stores,
Will Offer Gateway Computers, Internet Access and Accessories
In 1,100 Stores Across the Nation
SAN DIEGO and ERIE, Pa., April 21 /PRNewswire/ -- Gateway, Inc.
(NYSE: GTW) and Rent-Way, Inc. (NYSE: RWY) today announced that Rent-Way will
become the exclusive rental purchase supplier of Gateway computers and
technologies. Under the agreement, which calls for an initial term of three
years, Rent-Way will offer Gateway computers, complete with Internet access
exclusively to customers on a weekly rental basis. Also as part of the
agreement, Gateway Companies, Inc. will invest $7 million in Rent-Way.
In addition, Rent-Way will integrate Gateway computers and services
throughout its network of 1,100 stores across the country, and is subsidizing
Gateway computers for its 1,100 managers and 150 regional managers.
As the nation's second largest operator of rental purchase stores,
Rent-Way services hundreds of thousands of recurring customers each year
providing access to a range of furniture, appliances and equipment for the
home on either a weekly rental or rent-to-own basis. More than 70 percent of
Rent-Way's customers return to their neighborhood store to take advantage of
the service and immediate access to furniture and appliances for their home.
"We believe every one of our customers, as well as millions of others,
desire the use and access of a high-quality computer and first-class Internet
service," said William E. Morgenstern, chairman and CEO of Rent-Way. "Without
extensive credit delays or the requirement of a credit card, we will offer
Gateway computers and Internet service on a cancelable weekly lease for about
$20 per week -- half of the weekly rental price the rest of the industry
offers."
Gateway will train Rent-Way's sales associates on Gateway products and
services, provide in-store merchandise to explain its products and services,
and offer on-line training to Rent-Way customers to enable them to take full
advantage of the technology.
"By working with Rent-Way we are able to reach a unique segment of the
consumer market we were unable to reach before," said Todd Bradley, executive
vice president, global operations, Gateway. "The financial flexibility and
immediate access to products Rent-Way offers allow customers to take advantage
of technology and the Internet to change the way they live, work and play."
Rent-Way customers will have access to Gateway PCs and services beginning
in May. The companies anticipate the final closing of the agreement by
April 28, 2000.
About Gateway
Gateway (NYSE: GTW), a Fortune 250 company founded in 1985, focuses on
building lifelong relationships with consumers and businesses through complete
technology personalization. Gateway ranked number one in U.S. consumer PC
revenue in 1999 (1) and was rated among the top ten best corporate reputations
in America according to a survey conducted in August of 1999 by Harris
Interactive and the Reputation Institute and published in The Wall Street
Journal. Gateway employees worldwide provide clients with services and
built-to-order computers that consistently win top awards from leading
industry publications. Gateway had total global revenue of $8.65 billion in
1999 and shipped 4.68 million systems. For more information, visit our Web
site at http://www.gateway.com
About Rent-Way
Rent-Way, Inc. is the second-largest operator of rental-purchase stores in
the USA. Rent-Way rents quality, name-brand merchandise such as home
entertainment equipment, computers, furniture and appliances from 1093 stores
in 41 states. For more information, visit http://www.rentway.com.
(1) According to GartnerGroup/Dataquest US PC Quarterly statistics.
SOURCE Gateway, Inc.
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Related links:
http://www.rentway.com
http://www.gateway.com
CONTACT:
Donna Kather, Gateway Business, 949-609-4401,
donna.kather@gateway.com; or Debbie Connors of Rent-Way, Inc.,
814-461-5225, dconnors@rentway.com
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